Pricing Announcement
Good news! Shipments with a sail date on or after March 1st will no longer be subject to Peak Season Surcharges. This does come with some cost changes however. These changes vary depending on the country of origin. Please contact your sales representative, or sales@elentenyimports.com for an updated pricing guide.
French Strike Update
Authorities in France have announced that in addition to the full-day strikes on January 27 & 29 at Fos and Le Havre, dock workers have announced 4-hour strikes for every other business day during February beginning on the 4th and ending on the 28th. The ten strike days are expected to disrupt container movements, the pickup and return of containers, and impact equipment availability due to shortened work-windows.
State of the U.S. Wine Industry Report: Silicon Valley Bank
The biggest takeaway from the report is that U.S. wine prices are expected to be the most accessible in 30 years due to declining sales and excess inventory, creating a favorable market for consumers. However, the industry faces significant challenges, including a continued decline in sales, with projections of a 1-3% drop in 2024, and a 10-year low in business sentiment.
Key Findings:
-
Oversupply & Pricing: Discounts and promotions will be necessary to clear inventory, which may take over a year.
-
Declining Consumer Demand: Nearly half of surveyed wineries cite weak demand, double the number from 2023.
-
Changing Consumer Preferences: Younger consumers favor beer, spirits, and other beverages over wine, making it the third or fourth choice for those under 60.
-
Struggles in On-Premise Sales: Restaurant and bar wine sales have declined 7% in both volume and revenue, with no room for further price increases.
-
Off-Premise Market Trends: The $15-$20 price range remains strong, but some buyers are purchasing wine as gifts rather than for personal consumption.
-
Rise of Non-Alcoholic Alternatives: Some drinkers switch between alcoholic and non-alcoholic options, a trend known as “zebra striping.
-
Bulk Market Oversupply: Grape contract prices are expected to drop, though this will take time and could be painful for growers.
Check out the full report here
|
